Contract Request Template (Contracts; IGAs; Leases)
Date Submitted: 2-1-21
Requesting Agency: Denver International Airport
Division:
Subject Matter Expert Name:
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Name: Angela Casias |
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Email: angela.casias@flydenver.com |
Item Title & Description:
(Do not delete the following instructions)
These appear on the Council meeting agenda. Initially, the requesting agency will enter a 2-3 sentence description. Upon bill filling, the City Attorney’s Office should enter the title above the description (the title should be in bold font).
Both the title and description must be entered between the red “title” and “body” below. Do not at any time delete the red “title” or “body” markers from this template.
title
A resolution approving a proposed Agreement between the City and County of Denver and Marsh USA, Inc. concerning brokerage services for a Rolling Owner Controlled Insurance Policy for the construction projects at Denver International Airport.
Approves a contract with Marsh USA, Inc. for $11,886,260 and for five years to serve as an insurance broker for a Rolling Owner Controlled Insurance Program (ROCIP) and be responsible for designing, marketing, negotiating and implementing insurance coverages and providing administrative, loss control, claims management, and stewardship/performance reporting services for Construction Projects occurring 2020 - 2025 at Denver International Airport (202054510). The last regularly scheduled Council meeting within the 30-day review period is on 3-15-21. The Committee approved filing this item at its meeting on 2-10-21.
body
Affected Council District(s) or citywide? Council District 11
Contract Control Number: 202054510
Vendor/Contractor Name (including any “DBA”): Marsh USA, Inc.
Type and Scope of services to be performed:
Selection of an insurance broker to serve as the Program Administrator for a Rolling Owner Controlled Insurance Program (ROCIP) for Construction Projects occurring 2020 - 2025. Estimated Construction Value in 5yr CIP: $780,000,000. The insurance broker would be responsible for designing, marketing, negotiating and implementing insurance coverages and providing administrative, loss control, claims management, and stewardship/performance reporting services for Denver International Airport (DEN) ROCIP IV.
Budget was established from a program estimate obtained from the current ROCIP III insurance broker.
Driving need is that ROCIP III will expire Sep 1, 2022 and cannot accept projects that will not complete prior to that date and DEN already has construction projects in the forecast that span beyond ROCIP III's expiration that will not have a program to participate under with implementing ROCIP IV. Key risks of not have a ROCIP program in place to insure large DEN construction projects include:
1. Less control and consistency of safety practices and oversight
2. Fewer disadvantaged businesses bidding and participating on DEN construction projects
3. Increased difficulty for Lead Contractors to meet their DSBO goals
4. Increased expense to DEN for contractor placed insurance without benefit of DEN buying power
5. Uncertainty for DEN on the terms, conditions, and effectiveness of insurance
6. Increased expense to address claim and/or coverage disputes with involvement of multiple contractor insurers
Location (if applicable):
WBE/MBE/DBE goals that were applied, if applicable (construction, design, Airport concession contracts):
Are WBE/MBE/DBE goals met (if applicable)?
Is the contract new/a renewal/extension or amendment?
Was this contractor selected by competitive process or sole source?
Competitive process
For New contracts
Term of initial contract:
Options for Renewal:
How many renewals (i.e. up to 2 renewals)?
Term of any renewals (i.e. 1 year each):
Cost of initial contract term: $11,886,260
Cost of any renewals:
Total contract value council is approving if all renewals exercised:
For Amendments/Renewals Extensions:
Is this a change to cost/pricing; length of term; terms unrelated to time or price (List all that apply)?
If length changing
What was the length of the term of the original contract?
What is the length of the extension/renewal?
What is the revised total term of the contract?
If cost changing
What was the original value of the entire contract prior to this proposed change?
What is the value of the proposed change?
What is the new/revised total value including change?
If terms changing
Describe the change and the reason for it (i.e. compliance with state law, different way of doing business etc.)